ASX healthcare stocks showed mixed results following the release of their most recent financials on Tuesday.
Three companies in particular stand out, with two finishing in the green and one in the red.
Integral Diagnostics Ltd (ASX: IDX), Neuren Pharmaceuticals Ltd (ASX: NEU), and Race Oncology Ltd (ASX: RAC) are the three in question.
Integral and Race put up their FY24 numbers, whereas Neuren reported its earnings for the first half of 2024.
However, It was Integral and Neuren that finished in the green today, up over 1% each. Meanwhile, Race settled down nearly 8%. Let's take a look.
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ASX healthcare stocks mixed after earnings
Integral finished 1.17% higher today. The ASX healthcare stock had a reasonably solid year, recovering from a sharp sell-off in October.
Despite a 6.6% increase in revenue to $469.7 million in FY24, IDX posted a statutory net loss of $60.7 million.
But the loss was due to non-cash charges in its New Zealand division, meaning it wasn't reflected in the company's cash flows.
As such, the company's operating profit rose by 7.4% to $91.5 million.
CEO Dr Ian Kadish expressed optimism about the future, citing strong industry fundamentals and the upcoming merger with Capitol Health Limited:
We are pleased to report a materially stronger 2H FY24 profit result compared to 1H FY24. Strong industry fundamentals, a more favourable regulatory environment, and improving company performance allow us to focus on both organic and inorganic growth opportunities, including the transformational proposed merger with [Capitol Health].
Neuren shines in H1 2024
Neuren Pharmaceuticals reported a sharp increase in royalty income in H1 2024, which soared to $24.3 million from $3.5 million in the previous year. It finished 1.03% in the green today.
The company also posted a profit after tax of $8 million, a significant turnaround from its losses last year.
The ASX healthcare stock's performance was driven by the continued success of its DAYBUE label's commercialisation in North America.
After the strong year, management projected full-year guidance for DAYBUE revenue set between $132 million-$138 million.
CEO Jon Pilcher expressed confidence in the company's trajectory:
We anticipate full-year revenue from DAYBUE of $132-138 million and we now have highly encouraging results from Phase 2 trials of NNZ2591 across three syndromes. With cash and short-term investments of $213 million, Neuren is in the ideal position to optimise the potential of NNZ-2591 in multiple indication.
Race Oncology in the red
Race Oncology reported a net loss of $13.8 million in FY24, widening from the previous year's loss of $9.9 million.
This came as research and development (R&D) expenditures were up 44% year over year to almost $11 billion.
Meanwhile, share-based payment expense increased by 142% year over year to more than $1.4 million.
Shares finished 7.51% in the red today as investors digested the news.
At the end of the year, the ASX healthcare stock had $18.3 million in net assets on the balance sheet, down from $25.4 million last year.
This came as it burnt more than $4 million of cash during the year.
In addition, the company made progress in advancing its lead asset, RC220 bisantrene, towards human clinical trials.
Reflecting on the year, Race's chair, Mary Harney, emphasised the strategic importance of these developments:
The past year saw us make robust progress on our objective of taking the new bisantrene formulation, RC220 into humans for the first time.
Reflecting on a period of significant clinical progress and key strategic milestones for Race, I'm encouraged that our commitment to advancing cardioprotective anticancer therapies has produced promising results, supported by strong preclinical data and regulatory acknowledgment.
ASX healthcare stocks snapshot
These ASX healthcare shares had different reactions after their FY24 earnings. While Integral and Neuren finished higher today, Race shares finished in the red after a mixed year.
